Despite the turbulence on global share markets in recent months, OMX Copenhagen could see a number of IPOs for renewable energy companies, writes financial daily newspaper Børsen. OMX Copenhagen is currently negotiating with several companies, and experts reckon several of them will be well suited for the Danish bourse.
"There is no doubt that the stock exchange in Copenhagen will gain more renewable energy companies in the coming years," Carsten Borring of OMX Copenhagen told Børsen. "We have been in dialogue with several of them and in Denmark we have many small companies that are sub-suppliers for the stock exchange listed companies in Denmark.
Initially, IPOs are expected to come from the wind turbine industry where Denmark historically has played a central role. After NEG Micon merged with Vestas Wind Systems in 2003, the latter is the only large company from the industry that is listed on OMX Copenhagen, and the company is considered to be an important driving force for other companies seeking a listing.
"In renewable energy, it is very good to have a company like Vestas because it is one of our largest customers, and there are a great number of foreign investors in the share. That produces a positive spiral because it provides many in-depth analyses of the company," said Borring.
Kim Bøttkjær, director and partner of FIH Partners said that the historic tradition of the wind turbine industry in Denmark can help attract more new companies to be listed here. In addition, Denmark has a well-developed corps of analysts who have built up a thorough understanding of the industry. "When you choose which bourse to be listed on, it is often an attraction that investors are used to handling companies of this type. That can make Copenhagen Stock Exchange more attractive than others."